1. Collection of data
2. MEASURES OF CENTRAL TENDENCY
3. CORRELATION & REGRESSION ANALYSIS
4. Index Numbers
5. TIME SERIES ANALYSIS
6. Ratio Analysis
7. PROBABILITY THEORY
8. Etc……
MBA 1 Sem (EQSM) Ravi Lakhani (Assistant Professor, JLBS)
Scope of Statistics
Statistics increases the field of mental vision just as a
binocular increases the field of physical vision
Correlation and
6 Marketing Cross-Market Analysis
Regression Analysis
Investments, Portfolio
7 Decision Theory Finance Selection, Mergers and
Acquisitions
Discriminant
8 Finance Credit Risk Analysis
Analysis
Discriminant
9 Marketing Customer Profiling
Analysis
10 Forecasting Banking Business Forecasting
MBA 1 Sem (EQSM) Ravi Lakhani (Assistant Professor, JLBS)
Illustrative List of Statistical
Techniques and their Applications
Sr Statistical
Field Specific Application
No Technique
Pricing of Financial
11 Forecasting Finance Products, Return on
Investment
Mode
Measures of Variation
Measure of Location
Centre of Gravity
There are three such measures:
– Mean
– Mode
Arithmetic Mean
Harmonic Mean
Geometric Mean
Sum of Observations
x =
Number of Observations
xi
=
n
x=
fx i i
f i
x=
fx i i
f i
= 9100 ÷ 20
= 4550
= 4625.5
2000-3000 2 2
3000-4000 5 7
4000-5000 6 13
5000-6000 4 17
6000-70000 3 20
(n / 4 ) - fc
Q 1= L Q1 + ´ w Q1
f Q1
(3n / 4) - fc
Q3= LQ3 + ´ wQ3
fQ3
2000-3000 2 2
3000-4000 5 7
4000-5000 6 13
5000-6000 4 17
6000-70000 3 20
= 5500
The interpretation of this value of Q3 is that 75 %
billionaires have equity holdings less than Rs. 5500 Millions.
Advantages Disadvantages
Standard Deviation
Coefficient of Variation/SD
Variance
Mean Deviation
Quartile Deviation
Skewness
Etc…..
Interpretation of Variance-
Value of Variance interpretation
Smaller the value of Lesser the variability or greater the uniformity
in the population.
Larger the value of Greater the variability or lesser the uniformity
in the population
Example 1.
From the following data, calculate standard
deviation, coefficient of variation and
variance in case of an individual series by
actual mean method.
Roll 1 2 3 4 5 6
no.
Marks 5 15 25 35 45 55
Example 2.
From the following data, calculate standard
deviation coefficient of variation and
variance in case of an individual series by
assumed mean method.
No. of 10 20 30 50 40 30
Students
Marks 5 15 25 35 45 55
Example 3.
From the following data, calculate standard
deviation coefficient of variation and
variance in case of an discrete series by
actual mean method.
Marks 5 15 25 35 45 55
No. of Students 10 20 30 50 40 30
Example 4.
From the following data, calculate standard
deviation coefficient of variation and
variance in case of an continuous series by
actual mean method.
marks 0-10 10-20 20-30 30-40 40-50 50-60
No. of 10 20 30 50 40 30
Students